Segment highlights

Significant shifts are underway in how Africa’s entertainment and media companies compete and generate value, as the quality of the experience they deliver to consumers becomes their primary basis for strategic differentiation and revenue growth. To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capabilities to engage with consumers.​

​South Africa​

​By 2021 total E&M revenue in South Africa is expected to reach R177.8 billion, up from R132.7 billion in 2016. Internet access will account for R27 billion of this increase. The fastest growing sectors will be virtual reality (VR) and e-sports compounded annually at 72.6% and 39.6%. Although growth in revenue will hold up, it is expected to slow down by the end of 2021.

Digital spend will continue to drive the overall growth. Nearly 40% of total spend will be derived from Internet access in revenue. South Africa’s Internet access market is forecast to rise to 77.8% by the end of 2021 from 52.3% in 2016. Mobile Internet access revenues are projected to grow by a CAGR of 10.7% to nearly R62 billion.

South Africa can expect a CAGR of 7.2% for consumer revenue over the forecast period, rising from R87.4 billion in 2016 to R123.7 billion in 20201. The largest contributor will be Internet access, with a 48% share in 2016 rising to 56% in 2021.​

Nigeria

​Nigeria is one of the fastest growing countries highlighted in this year's Outlook with internet access revenue making up the majority of this growth with TV and Video following.

Kenya

Revenue is forecast to grow at an 8.5% CAGR over the next five years, hitting the US$3 billion mark in 2020, and totaling US$3.2 billion in 2021. Internet access is the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates to 2021.

Ghana

Ghana’s E&M industry is beginning to gear up. In 2012, total revenue was just at US$214 million, but four consecutive years of year-on-year growth above 25% have led it to estimated revenue of US$685 million in 2016. This is forecast to more than double over the next five years, with U$1 billion being surpassed in 2019 and a total of US$1.5 billion forecast for 2021, ​growing at​ a 16.5% CAGR.

Tanzania

Tanzania’s total E&M revenue stood at US$504 million in 2016, but is set to more than double to US$1.1 billion in 2021, a 17.2% CAGR over the coming five years. This is significant growth from 2012 where the industry stood at just US$175 million.